Clear rules and standards are essential in international trade. This is precisely where Incoterms come in: standardized terms that clearly define responsibilities, regulations, and risks in international trade transactions.

Incoterms, an abbreviation for "International Commercial Terms", these are globally recognized rules that define the obligations of buyers and sellers in international trade. They clarify who is responsible for what. Especially for:

Time and place of delivery,

risks and insurance,

costs and

customs clearance.

The Incoterms were introduced in 1936 by the International Chamber of Commerce (ICC) and have since become an essential part of international trade. The precise rules are usually updated every 10 years and are recognized worldwide by importers, exporters, freight forwarders, and carriers.

According to the German ICC, the Incoterms offer “… a globally valid standard for delivery terms in international business.”

The latest definition of Incoterms dates from 2020 and is still valid for 2024, 2025 and beyond.

According to the ICC, Incoterms are used in 90% of all sales contracts worldwide.

Essentially, Incoterms regulate and simplify common questions such as:

When does the goods transfer from the seller to the buyer?

Who bears which transport costs?

Who assumes liability for loss and damage to the goods, as well as the insurance costs, and from what point in time?

More at https://www.icc-austria.org/incoterms2020.htm